Leesburg Proposes $201 Million Budget, Maintains Real Estate Tax Rate

The Town of Leesburg has put forth a proposed Fiscal Year 2027 budget totaling $201.3 million, which includes the General Fund, Capital Projects Fund, and Utilities Fund. Presented to the Leesburg Town Council, the proposal aims to maintain the current real estate tax rate while outlining significant capital improvement plans. This budget reflects a focus on sustaining existing services and presents options for the council to consider for addressing key community needs.

The proposed budget aims to keep the real property tax rate at 17.74 cents per $100 of assessed value. However, with an anticipated average increase of 3.0% in residential assessments, the homeowner’s “equalized rate” would effectively be 17.26 cents. Should the Town Council opt to adopt this equalized rate, the General Fund budget would require a reduction of $700,000. If the 17.74-cent rate is approved, the average annual increase for single-family homes, townhomes, and condominiums is projected to be $33.44, or approximately $2.79 per month.

The General Fund budget itself is set at $94.1 million. Any proposed enhancements to this fund are intended to be financed through the Unassigned Fund Balance, addressing one-time costs rather than recurring expenses. The plan does not include provisions for any new staff positions in the upcoming fiscal year. Several key enhancements are being considered by the Council at the direction of town management. These include updates to the Subdivision and Land Development Regulations, a study on development fees, improvements to Lassiter Way, the development of a Bike Lane Master Plan, and upgrades for downtown floodplain management.

In addition to the formal budget proposal, Leesburg Town Manager Kaj Dentler presented two alternative scenarios for the Town Council’s consideration. These scenarios address critical needs that cannot be fully funded within the proposed budget without either a tax increase or the identification of new revenue streams. One scenario suggests enhancing the milling and paving program through a combination of a one-cent increase in the real estate tax rate and the allocation of $1 million annually from prior year data center computer equipment tax revenues. A second scenario proposes using a one-cent real estate tax rate increase to bolster public safety initiatives, including funding for collective bargaining as previously supported by the Council.

The Six-Year Capital Improvements Program (CIP), spanning Fiscal Years 2027 through 2032, is valued at $360.2 million and encompasses 66 projects, including nine new initiatives. The proposed Utilities Fund budget for Fiscal Year 2027 is $78.8 million, with $43.6 million designated for capital improvements. This budget is the third year of a five-year rate plan established by the Council in 2024, which anticipates a 4.1% increase in average residential utility bills. Importantly, the proposed personal property tax rates are slated to remain unchanged from the current year.

Residents of Leesburg can anticipate a series of opportunities to provide feedback on the proposed budget and capital improvements. The Town Council is scheduled to hold multiple work sessions, a public hearing, and a dedicated public input session for residents and taxpayers to voice their opinions. In addition, separate public hearings will be conducted for the proposed Tax Year 2026 real estate and personal property tax rates. All these sessions will take place in the Leesburg Town Hall Council Chamber, located at 25 West Market Street, and typically begin at 7 p.m. A special Budget Public Input Session is also scheduled for Saturday, March 21, from 9 a.m. to noon at Town Hall. The schedule for the budget review and adoption process includes work sessions on February 23 and March 9 and 23, and public hearings on March 10 and March 24. The adoption of the budget, tax rates, and fees is slated for March 24. The full proposed budget document and the Town Manager’s presentation are accessible on the Town of Leesburg’s official website at http://www.leesburgva.gov/budget.

Article by Mel Anara, based upon information from the Town of Leesburg, Virginia

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